MP3.com Settles Suit With EMI

MP3.com and the EMI Group Plc said Friday they settled a copyright infringement suit that will allow MP3.com to use the record label's music as part of its MP3.com service.

Though terms of the settlement were not released, Reuters reported that sources said MP3.com would pay $20 million in damages to settle the suit and pay a fee each time an EMI CD was registered by a user on its site and another fee each time a user accesses a song.

MP3.com lost a suit filed by six major record labels earlier this year. The labels argued that MP3.com's My.MP3.com service violates copyright law because it allows users to access a database of music and store recordings on their computers.

In June, MP3.com settled with Time Warner's Warner Music Group and Bertelsman AG's music division BMG. The company is still negotiating with Sony Music Entertainment and Seagram's Universal Entertainment Group. MP3.com has until Aug 28 to settle before the U.S. District Court in New York imposes damages.

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